Couple Getting Divorced
- Thread starter SamIam
- Start date
Re: Couple Getting Divorsed
What is the date of the divorce?
I just ask, because if they're getting divorced today and applying tomorrow, yes. Definitely would use their personal income and household size of 1. That's nice and simple.
If they are applying before the divorce, it's another story entirely. It's my understanding that they would apply with household income, household size 2, and claim to file jointly (as is their current status). When divorced, they would have to notify the state of their change of marital status, and re-enroll separately.
What is the date of the divorce?
I just ask, because if they're getting divorced today and applying tomorrow, yes. Definitely would use their personal income and household size of 1. That's nice and simple.
If they are applying before the divorce, it's another story entirely. It's my understanding that they would apply with household income, household size 2, and claim to file jointly (as is their current status). When divorced, they would have to notify the state of their change of marital status, and re-enroll separately.
- 8,448
Re: Couple Getting Divorsed
No joint filing 2014 no subsidy. Ray is right re income treatment.
No joint filing 2014 no subsidy. Ray is right re income treatment.
- 892
Re: Couple Getting Divorsed
How can I get coverage outside of open enrollment?
Buying a Marketplace plan outside open enrollment
In order to buy a Marketplace health insurance plan outside the open enrollment period, you must have a qualifying life event. Qualifying life events that create a special enrollment period include:
How can I get coverage outside of open enrollment?
Buying a Marketplace plan outside open enrollment
In order to buy a Marketplace health insurance plan outside the open enrollment period, you must have a qualifying life event. Qualifying life events that create a special enrollment period include:
- Getting married
- Having, adopting, or placement of a child
- Permanently moving to a new area that offers different health plan options
- Losing other health coverage (for example due to a job loss, divorce, loss of eligibility for Medicaid or CHIP, expiration of COBRA coverage, or a health plan being decertified). Note: Voluntarily quitting other health coverage or being terminated for not paying your premiums are not considered loss of coverage. Losing coverage that is not minimum essential coverage is also not considered loss of coverage.)
- For people already enrolled in Marketplace coverage, having a change in income or household status that affects eligibility for tax credits or cost-sharing reductions
Re: Couple Getting Divorsed
Filing married joint is a non-issue if the couple is getting divorced this year on or before 12/31/2014.
Apply for a subsidy as a married couple while they are married.
Reapply for the subsidy after the divorce. The IRS TD9590 shows that the exchange will figure up 2 subsidy amounts. The first one will be for the months they were married and it will be based on household income. The second one will be for the months they were divorced, based on their own separate household incomes.
There is a lot of detail in the IRS TD9590 about this, in case you like light reading!
Filing married joint is a non-issue if the couple is getting divorced this year on or before 12/31/2014.
Apply for a subsidy as a married couple while they are married.
Reapply for the subsidy after the divorce. The IRS TD9590 shows that the exchange will figure up 2 subsidy amounts. The first one will be for the months they were married and it will be based on household income. The second one will be for the months they were divorced, based on their own separate household incomes.
There is a lot of detail in the IRS TD9590 about this, in case you like light reading!
- 1,735
Re: Couple Getting Divorsed
I wonder if that 2 subsidy per year calculation limit would apply in this example: couple are separated, may or may not file for divorce in 2014. They do file jointly for taxes.
HC.gov says, each spouse applies on separate applications for subsidy and insurance, but uses joint income information from tax return on each app (if husband applies, of course). Will need to question carefully about husband's eligibility for work related insurance, which would most likely also be available to spouse. That would change the whole picture. But, assuming he would qualify for subsidy, we'll carry on...They have one child, and only one spouse gets to use the child for household size.
Good so far, 2 calculations for the couple. Now, if they get divorced during the year, there would be a re-calc of the subsidy, if I understand this.
I wonder if that 2 subsidy per year calculation limit would apply in this example: couple are separated, may or may not file for divorce in 2014. They do file jointly for taxes.
HC.gov says, each spouse applies on separate applications for subsidy and insurance, but uses joint income information from tax return on each app (if husband applies, of course). Will need to question carefully about husband's eligibility for work related insurance, which would most likely also be available to spouse. That would change the whole picture. But, assuming he would qualify for subsidy, we'll carry on...They have one child, and only one spouse gets to use the child for household size.
Good so far, 2 calculations for the couple. Now, if they get divorced during the year, there would be a re-calc of the subsidy, if I understand this.
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